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Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

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Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#221

Post by kalleboo »

frockington1 wrote: post #213
lotsofpulp wrote: post #125

Earlier quoted context omitted.

> So our solution to a problem backfired and we found out that federally guaranteed loans aren't the solution to "college should be available to everyone." This was already known, but since simply providing taxpayer funded education results in increases of government expenses and hence higher taxes, we of course went with the Byzantine route of indebting people who don’t even know what amortization is to the tune of…

I don't think its unrealistic for an 18 year old to understand debt. Also, how are they being tricked into hundreds of thousands of dollars of ? State schools start around 15k/year and provide bachelors degrees. I've never understood these stories of people graduating (non-PhD/Lawyer)with so much debt

> I don't think its unrealistic for an 18 year old to understand debt

It really shouldn't be, but here we are. The proof is in the pudding. Their high school education has failed them, parental and job market pressures to have a degree has failed them.

Just standing around and going "well they should have known" isn't going to solve anything. Eventually they're going to be a big enough voting bloc to pass something like debt relief (example: old people and unsustainable pensions) and who's going to be stuck holding the bag? Better to solve the problem as early as possible instead of just standing around blaming them and not fixing anything.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#222

Post by adventskalender »

swebs wrote: post #168
adventskalender wrote: post #137

Earlier quoted context omitted.

That may be so, but doesn't necessarily imply that health care is more expensive in the US. It's possible that in the US they simply spend more money on useless things, or do more screenings with better technology, for example. Many things can go wrong with interpreting such statistics, see also my comment here: https://news.ycombinator.com/item?id=21760725 Afaik, some of the best (and also most expensive) medical pr…

In Sweden, you pay taxes for healthcare and everyone receives healthcare. In the USA, you pay taxes for healthcare, but only the old and the poor receive that tax funded healthcare. So the average taxpayer has to buy their own health insurance in addition. The linked chart also shows a clear correlation with Purchasing Power Parity, which also should be accounted for.

" So the average taxpayer has to buy their own health insurance in addition."

How the money is collected is pretty irrelevant (indirectly via taxes or directly by the insurance company or physician). What matters is the overall cost.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#224

Post by AsyncAwait »

corporate_shi11 wrote: post #215

Time to eliminate government funded student loans. Most of the kids going to college now shouldn't even be there in the first place. I was doing volunteer work a few years back, speaking to some kids from the local community. One said he was going to a 4 year college, probably paid for by the government given the circumstances. Said he wanted to study "coaching". And our tax dollars are paying for this...

This is the reactionary right-wing Twitter take, but for every coach, there's computer science, engineering & biology students suffering under massive, unforgivable debt.

Yes, student loans need to go, but not so that people don't go to college. That should be free for undergraduates in today's economy, where you need high level ed. for what used to be done by people who barely finished high-school 30 years back.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#225

Post by TrumpSucks »

zrail wrote: post #105
pgcj_poster wrote: post #99

Earlier quoted context omitted.

Black Americans are poorer than most other groups, and I suspect that they're less likely to get parental support paying for college.

Let’s be very clear: Black Americans are poorer because of racist policies that kept them out of the huge post-WWII governmental benefit programs. Things like the GI bill and veteran home loans, and homeownership in general were white-only for many years, allowing that group to build generational wealth that continues to this day.

Lol.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#226

Post by vonmoltke »

sokoloff wrote: post #184
lotsofpulp wrote: post #177

Earlier quoted context omitted.

> Reforming higher education means cutting spending first and foremost. This has already occurred and continues to be cut further. What also happened however, is the legislature promised lenders that taxpayers would pay for all student loans. Of course this doesn’t get accounted in cash flow, because you can just assume more people will pay back their loans than actually will. So now you have a situation where a lend…

Are private student loans backed by a federal guarantee of repayment? I didn’t think they were (and federal loans are definitely not infinite). A student who is unable to repay their private loans before death leaves the lender without the money I think.

Private loans are not backed by a federal guarantee, which is why they are such a small portion of the pie.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#227

Post by raverbashing »

alistairSH wrote: post #219
moduspol wrote: post #189

Earlier quoted context omitted.

It's federally guaranteed student loans that got us here! It wasn't like this for our parents. This comment is an example of how any amount of problems caused by government intervention can be framed as a need for more government intervention.

The predecessor of the Stafford Loan program was created in 1965, so it was like this for most of our parents. But, the cost of school has outpaced inflation for that period, making the situation worse. No question about that. We'd probably all be better off if the government simply gave grants to students who meet some minimum threshold. Call it top 20% of class or thereabouts.

"cost of school" oh but wait, it's not the cost of tuition as in the people and materials actually involved in it. Just ask any professor.

It's the cost of the administration. The cost of facilities. The extortion racket that are mandatory latest editions textbooks.

Universities are becoming less about teaching people and more about capturing grants and "selling the experience"

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#228

Post by aiphex »

AsyncAwait wrote: post #224
corporate_shi11 wrote: post #215

Time to eliminate government funded student loans. Most of the kids going to college now shouldn't even be there in the first place. I was doing volunteer work a few years back, speaking to some kids from the local community. One said he was going to a 4 year college, probably paid for by the government given the circumstances. Said he wanted to study "coaching". And our tax dollars are paying for this...

This is the reactionary right-wing Twitter take, but for every coach, there's computer science, engineering & biology students suffering under massive, unforgivable debt. Yes, student loans need to go, but not so that people don't go to college. That should be free for undergraduates in today's economy, where you need high level ed. for what used to be done by people who barely finished high-school 30 years back.

I think university education also makes more intelligent, socially and self aware members of society. Even if it doesn't directly lead to a career in a chosen field, it produces better people who hopefully make better employees.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#229

Post by dwnvoted2hell »

AsyncAwait wrote: post #224
corporate_shi11 wrote: post #215

Time to eliminate government funded student loans. Most of the kids going to college now shouldn't even be there in the first place. I was doing volunteer work a few years back, speaking to some kids from the local community. One said he was going to a 4 year college, probably paid for by the government given the circumstances. Said he wanted to study "coaching". And our tax dollars are paying for this...

This is the reactionary right-wing Twitter take, but for every coach, there's computer science, engineering & biology students suffering under massive, unforgivable debt. Yes, student loans need to go, but not so that people don't go to college. That should be free for undergraduates in today's economy, where you need high level ed. for what used to be done by people who barely finished high-school 30 years back.

While there are publications that predict job growth, perhaps real statistics with what workforce is presently training for would also help. Maybe fields without growth should have limited spots for people to get a degree in. And fields with high need whose demand is not being filled could be subsidized. Most of this is already happening to some extent.

Re: Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says

#230

Post by scarface74 »

corporate_shi11 wrote: post #215

Time to eliminate government funded student loans. Most of the kids going to college now shouldn't even be there in the first place. I was doing volunteer work a few years back, speaking to some kids from the local community. One said he was going to a 4 year college, probably paid for by the government given the circumstances. Said he wanted to study "coaching". And our tax dollars are paying for this...

Right. Only people with money should get an education.
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